The maritime imports of new cars to the United States have seen a significant decline over the past year. In May alone, only about 3,600 cars were imported to the States, marking a steep drop of more than 72% compared to the previous year. This sharp decrease in imports can be attributed to automakers holding off on importing vehicles, possibly in an attempt to avoid paying potential tariffs imposed by President Donald Trump.
President Trump’s “bipolar tariff regime” has had a notable impact on the automotive industry. Many automakers have pledged to keep prices stable for as long as possible in response to the tariffs. Industry experts had predicted that U.S. consumers would start feeling the effects of the tariffs by May, and the decline in overseas vehicle shipping volume confirms this prediction.
According to a report by Automotive News, the volume of maritime auto imports to the U.S. has decreased by a staggering 72.3% year-over-year. In May, only around 3,600 “20-foot equivalent units” of vehicles were shipped to the U.S., representing a significant reduction compared to the previous year.
The decrease in imports is not limited to complete vehicles but also extends to automotive parts and accessories, which have seen a 15% drop in volume year-over-year. Interestingly, imports of vehicle bodies and cabs have actually increased by 18%, indicating a shift towards domestic final assembly to mitigate the impact of import tariffs.
Descartes Datamyne, a database that analyzes trade industry trends, attributes the decline in shipments to the tariffs imposed by the Trump administration. Jackson Wood, the director of industry strategy for global trade at Descartes Systems Group, stated that importers are pausing their shipments in the hopes of more favorable tariff conditions emerging in the future.
As the inventory of new vehicles continues to decrease, dealers are selling through pre-tariff inventory rapidly, leading to a potential seller’s market in the near future. With prices already on the rise due to tariffs, new car sales are expected to face challenges in the coming months.
In this uncertain automotive landscape, automakers are focusing on cost-cutting measures to avoid price hikes and maintain profitability. However, the inevitability of price increases looms unless automakers are willing to take a financial hit or give up on importing vehicles altogether.
The impact of tariffs on the automotive industry is undeniable, and as import volumes decline, consumers can expect changes in the availability and pricing of new cars in the U.S. The industry is navigating a challenging period, balancing the need to remain competitive while adapting to evolving trade policies.